News Corp’s DirecTV deal stalls
Merger discussions between News Corporation and General Motors about News Corp’s reverse takeover of US direct-to-home satellite service DirecTV are said to be stalling because GM is unhappy with the amount being offered as part of the deal.
LONDON (Brand Republic) - Merger discussions between News Corporation and General Motors about News Corp’s reverse takeover of US direct-to-home satellite service DirecTV are said to be stalling because GM is unhappy with the amount being offered as part of the deal.
Under News Corp’s proposal, GM would spin off its DirecTV holding company Hughes, which the car giant is keen to dispose of.
Hughes would then be merged with News Corp’s Sky Global Networks satellite division, creating an independent publicly listed company valued at around $70bn (£47.9bn). Other Sky Global investors are expected to include Microsoft and Liberty Media.
News Corp is expected hold a stake of 34% in the new company and have day-to-day operating control. The amount the media giant has offered GM has not been disclosed.
Speaking at the Front Row media conference in New York yesterday, News Corp chairman Rupert Murdoch said that he believed DirecTV’s 10m subscriber base had the potential to grow to 30m. He said that the direct-to-home service’s churn rate was too high and that it was not being controlled by management.
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